What happens to my home insurance policy when moving?
In most cases, your insurer will be able to offer you a policy on your place, but this doesn’t mean you’re transferring your current policy to the new home. Instead, you’re ending your current policy and starting a brand new one. This is because a new property comes with its own set of factors – such as the location, materials, and replacement cost – which will impact the cost of your insurance.
This also applies to the new owner of your current home – they cannot assume your existing insurance policy. They would have to apply for their own policy and the premium will be determined according to their own risk factors.
Make sure to notify your provider as soon as possible. Different insurance companies have different rules but giving at least 30 of notice before the move-in date is best.
How to switch home insurance companies when moving
If you've notified your provider of the move and you're unhappy with your new rate, you don't need to settle. Instead, you can shop around and compare home insurance quotes for your new property.
Switching home insurance companies is as easy as cancelling your old policy and signing for a new one, but you need to be aware of the possible implications you may face.
Firstly, cancelling mid-policy often leads to penalty fees. Call up your current insurer to make sure you understand the process (and to make sure you're still comfortable with the switch). If you cancel with enough notice in advance (e.g. 30 days, 60 days), you may be able to waive the penalty.
Secondly, you'll want to make sure the end date of your old policy and the start date of your new policy line up time-wise. Having a gap in coverage is not only a bad idea because your property will be uninsured during this time, but it may also have poor implications on your future home insurance rates.
